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N.R.AGARWAL 2022-23 Annual Report Analysis

Wed, 27 Sep

N.R.AGARWAL has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

N.R.AGARWAL Income Statement Analysis

• Operating income during the year rose 9.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 29.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 10.4% in FY23 as against 8.8% in FY22.
• Depreciation charges increased by 4.1% and finance costs decreased by 45.3% YoY, respectively.
• Other income grew by 13.3% YoY.
• Net profit for the year grew by 62.7% YoY.
• Net profit margins during the year grew from 3.8% in FY22 to 5.6% in FY23.

N.R.AGARWAL Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	16,165	17,661	9.3%
Other income	Rs m	114	129	13.3%
Total Revenues	Rs m	16,279	17,790	9.3%
Gross profit	Rs m	1,428	1,844	29.1%
Depreciation	Rs m	344	358	4.1%
Interest	Rs m	252	138	-45.3%
Profit before tax	Rs m	946	1,477	56.2%
Tax	Rs m	336	484	44.2%
Profit after tax	Rs m	610	993	62.7%
Gross profit margin	%	8.8	10.4
Effective tax rate	%	35.5	32.8
Net profit margin	%	3.8	5.6

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N.R.AGARWAL Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 1 billion as compared to Rs 3 billion in FY22, thereby witnessing an decrease of -53.4%.
• Long-term debt stood at Rs 1 billion as compared to Rs 355 million during FY22, a growth of 273.7%.
• Current assets fell 7% and stood at Rs 3 billion, while fixed assets rose 29% and stood at Rs 7 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 10 billion as against Rs 10 billion during FY22, thereby witnessing a growth of 4%.

N.R.AGARWAL Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	5,361	6,356	18.6
Current Liabilities	Rs m	3,215	1,499	-53.4
Long-term Debt	Rs m	355	1,328	273.7
Total Liabilities	Rs m	10,008	10,409	4.0
Current assets	Rs m	3,648	3,394	-7.0
Fixed Assets	Rs m	5,440	7,015	29.0
Total Assets	Rs m	10,008	10,409	4.0

N.R.AGARWAL Cash Flow Statement Analysis

• N.R.AGARWAL's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion, an improvement of 34.9% on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -964 million, an improvement of 135.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -246 million, an improvement of 55% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 80 million from the Rs -1 million net cash flows seen during FY22.

N.R.AGARWAL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	956	1,290	34.9%
Cash Flow from Investing Activities	Rs m	-410	-964	-
Cash Flow from Financing Activities	Rs m	-548	-246	-
Net Cash Flow	Rs m	-1	80	-

Current Valuations for N.R.AGARWAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 58.3, an improvement from the EPS of Rs 35.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 374.1, stands at 5.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.0 times, while the price to sales ratio stands at 0.4 times.
• The company's price to cash flow (P/CF) ratio stood at 3.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	949.8	1,037.6
TTM Earnings per share	Rs	35.9	58.3
Diluted earnings per share	Rs	35.9	58.3
Price to Cash Flow	x	4.7	3.9
TTM P/E ratio	x	7.4	5.9
Price / Book Value ratio	x	0.9	0.8
Market Cap	Rs m	4,782	5,314
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for N.R.AGARWAL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.3x during FY23, from 1.1x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 11.7x during FY23, from 4.8x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 15.6% during FY23, from 11.4% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 21.0% during FY23, from 21.0% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 10.9% during FY23, from 8.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.1	2.3
Debtors’ Days	Days	377	285
Interest coverage	x	4.8	11.7
Debt to equity ratio	x	0.1	0.2
Return on assets	%	8.6	10.9
Return on equity	%	11.4	15.6
Return on capital employed	%	21.0	21.0

To see how N.R.AGARWAL has performed over the last 5 years, please visit here.

N.R.AGARWAL Share Price Performance

Over the last one year, N.R.AGARWAL share price has moved up from Rs 365.0 to Rs 374.1, registering a gain of Rs 9.1 or around 2.5%.

Overall, the S&P BSE SENSEX is up 15.6% over the year.

(To know more, check out historical annual results for N.R.AGARWAL and quarterly results for N.R.AGARWAL)